Republicans Offer No-Tax Budget

State Senator Kevin Kelly (R-21), State Representatives Laura Hoydick (R-120), Larry Miller (R-122) and Jason Perillo (R-113) along with Republican Legislative Leaders unveiled a no-tax increase budget proposal this week.

“This budget comes from the understanding that we cannot tax our way to propriety and that state government has grown beyond our ability to pay for it,” said Senator Kelly. “Through measures that streamline government and make the difficult but necessary cuts, we can rebuild the state’s economy, provide a fiscally sound environment for future generations and provide critical social services to individuals in need. The premise of this budget is to place the interests and needs of families and jobs ahead of the needs of government, and our alternative proposal does just that.”

The Republican budget is an alternative plan to Governor Dannel Malloy’s $1.9 billion tax increase. With a focus on core government functions, republicans have drafted a proposal for Fiscal Years 2012 and 2013 that establishes a right-sized state government while preserving aid to citizens, cities and towns.

"This proposed Republican budget is in stark contrast to the $1.9 billion tax increase the governor has offered," said Rep. Laura Hoydick.  "Not only do we not raise taxes one nickel on any individuals, businesses, goods, or services, but we also preserve aid to municipalities so the tax burden isn't shifted into local property taxes.  Stratford in particular will bet back the $2.8 million in Manufacturing, machinery and Equipment PILOT funds we would have lost under Governor Malloy's budget.  We also restore the film tax credit which the governor had eliminated which is critical to the Dogstar project redeveloping the 18-plus acres of the Stratford Exxon-Mobil plant on Lordship Boulevard."

Highlights of the Republican Alternative Budget include:

• No new taxes on any business, individual, employer, service or good.
• More than $1.5 billion in spending cuts from Gov. Malloy’s plan.
• Preservation of municipal aid at current levels for all towns and cities.
• Enhanced Medicaid fraud detection to save an estimated $224 million.
• More than $46 million in savings through agency consolidations.
• Streamlining government through attrition and reductions to the 54,000 member state workforce.
• No borrowing for state operating expenses.
• Full restoration of the $500 property tax credit cut by Gov. Malloy.
• The pre-payment of $200 million in the state’s highest cost debt, allowing greater flexibility in budgeting throughout state agencies.
• Restoration of the sales tax free week to help Connecticut consumers support household budgets.
• Elimination of longevity payments for state employees.    

"We have shown that the $3.5 billion deficit can be bridged without raising taxes of any kind and without cutting municipal aid," said Rep. Jason Perillo.  "Also, we don't shred the safety net protecting those who are our most vulnerable citizens. When we went out to our town hall meetings in our districts to meet with residents we listened to what they had to say, and they said loud and clear that they want to reduce taxes and reduce spending. We have done that in a responsible way."

Of the proposed reductions in state-funded positions, 1,250 would be targeted toward management. The Bipartisan Commission on Enhanced Agency Outcomes recommended that Connecticut cut in half the number of managers to come in line with the private sector.

"The budget we are offering today preserves school funding, municipal aid and restores the $500 property tax credit and sales tax exempt week," said Rep. Larry Miller.  "Most importantly it doesn't raise taxes.  The people of Connecticut are already paying the highest taxes in the nation.  They have been loud and clear about the fact that they can't afford the governor's tax increases.  There is a better way to solve this $3.5 billion deficit and I think we have shown the way."